Col Financial Group, Inc. · PSE:COL
Col Financial — Q2 2021 Earnings Presentation
28 slides from Col Financial's earnings presentation, 2021
Slide 1: 2Q21 COL Investor Presentation
2Q21 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading and fastest- licensed by the SEC in growing online stockbroker 1999 in the Philippines Focused on tapping Founder (Edward K. Lee) the underserved retail retains a 21.7% stake investor base in the and actively manages stock market the Company 2
Slide 3: Outstanding Shares, Free Float and Market Cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.16 Bil 24.3% Market Cap* Php20.9 Bil Public *As of end June 2021 14.9% Daiwa Securities Group 25.2% Other Directors & Officer 13.9% Alexander C. Yu 3
Slide 4: Business Objective
Business Objective To be the preferred source of financial services, a trusted provider of guidance and investment and a strong organization committed to delivering great value to its customers. Our goal is to be Champion of the Filipino Investor 4
Slide 5: COL Milestones
COL Milestones 1999 2000-2001 2006 2008 2010 Began operating the Listed in the PSE at Launched the COL Launched the full- Licensed by the SEC COL PH online Php0.136/sh service agency and Easy Investment to conduct business trading platform advisory team called Program (EIP) as a broker and the COL P
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 Officially changed Granted a Mutual Launched COL Fund Japan’s Daiwa corporate name to Fund Distributor Source - the first fund Securities Group, Inc. COL Financial License by the SEC supermarket in the acquired a 14.9% Group Inc. country stake in the company 6
Slide 7: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 1H21 Rank Broker Name 1H21 Value Turnover (Php Bil) % of Total 1 COL Financial Group, Inc. 244.0 11.2% 2 BDO Securities Corp 170.8 8.7 3 CLSA Philippines Inc 149.4 7.8 4 UBS Securities Philippines Inc 106.9 6.8 5 J.P. Morgan Securities Philippines Inc 102.2 4
Slide 8: The Biggest Philippine Based Stock Broker
The Biggest Philippine Based Stock Broker Total Accounts (as of 2020) Total Online Accounts (as of 2020) 69% 31 % 53% 47% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 1H21 6.7% Others 1.3% Trailer Fees Bulk of Revenues 10.7% Interest Generated from Commissions and Interest 81.3% Commissions from both Philippines and HK account for 81.3% of revenues. Commissions Interest income from margin loans and cash placements account for 10.7% of revenues.
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Record revenues and profits 1. Interest income fell sharply 2. 1H21 profits already above 2020 full year profits 2. Weakening PSE trading volume 3. Maintained rank as the country’s number one stockbroker 10
Slide 11: 1H21 Net Income +137% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 1H21 Net Income 1H20 1H21 Amount % Income +137% Y/Y Commissions 300.3 639.9 339.6 113.1% Interest 155.3 84.2 (71.1) -45.8% 1H21 net income more than doubled to a six- Trailer Fees 7.9 10.2 2.3 29.6% month record of Php479.5 Mil. The amount is
Slide 12: Higher Commissions and Other Income
Higher Commissions Pro Forma Revenue Breakdown (Php Mil) and Other Income Change 1H20 1H21 Amount % Revenues jumped by 69.6% led by the significant Revenue Breakdown increase in commissions and other income. Commission 300.3 639.9 339.6 113.1% Commission revenues increased 113.1% to Php639.9 PH-Self
Slide 13: Higher Commissions and Other Income
Higher Commissions Pro Forma Revenue Breakdown (Php Mil) and Other Income Change 1H20 1H21 Amount % Revenue Breakdown Self-directed clients accounted for the lion’s share of Commission 300.3 639.9 339.6 113.1% total commission revenues at 93.9%. PH-Self-directed 260.8 587.8 327.0 125.4% PH- Agency &
Slide 14: Flattish Fixed Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change 1H20 1H21 Amount % Trading Related Expenses Flattish Fixed Expenses Commission expenses 12.9 15.1 2.2 16.7% Agency & Advisory 11.3 14.2 2.9 25.9% Operating expenses increased by 7.0%, largely driven by CROs & Others 1.6 0.9 -0.8 -46.0% the 55.1% jump
Slide 15: ROAE Jumped to 50.1%
ROAE Jumped to 50.1% Selected Financial Ratios Annualized ROAE more than doubled from 24.1% to 1H20 1H21 50.1%. The improvement in profitability was driven by the Operating Profit Margin 58.2% 74.1% significant increase in margins and higher asset EBITDA Margin 65.9% 78.3% turnover. Net Margin 43.6%
Slide 16: Maintained Number 1 Rank
Comparative Performance (COL vs. PSE) Maintained Change Number 1 Rank 1H20 1H21 Amount % PSE Ave. Daily T/O (PhpMil) 6,593.3 8,959.2 2,366.0 35.9% COL’s average daily turnover more than doubled Y/Y to Php2.0 Bil in 1H21, outpacing COL Ave. Daily T/O (PhpMil) 921.0 1,999.6 1,078.6 117.1% the 35.9% gr
Slide 17: Market Share Remained High
Market Share Remained High COL Market Share (Value T/O) 13.7% COL Market Share (Local) 7.6% COL Market Share (Total) COL Market Share (Total) COL Market Share (Local) 17
Slide 18: But Market Volume Weakening
PSE Ave Daily Value T/O (Php Mil) 12,658 12,346 But Market Volume 11,042 Weakening… 9,882 9,452 8,508 8,065 8,184 7,974 The PSE’s average daily value turnover fell 6,964 7,055 to only Php5.9 Bil in July and is even lower 5,7185,625 5,673 5,585 5,868 in August. 5,193 On the positive side, the PSE’s a
Slide 19: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change Cash & cash equivalents decreased by 38.1% to Php3.6 12/31/20 6/30/21 Amount % Bil. This was largely due to the placement of more funds in investment securities to earn higher yields. Cash & cash equivalents 5,782.4 3,578.3 (
Slide 20: Significant Customer Growth
Client Base +22.6% Significant 467,765 Customer Growth 437,048 381,419 332,098 COL’s client base grew by 22.6% Y/Y to 292,401 467,765 as of end June 2021. 247,609 Average monthly additions during the past 12 months reached 7,196. 2017 2018 2019 2020 1H20 1H21 20
Slide 21: Client Equity up on Higher Deposits, and Better Market Conditions
Client Equity (Php Mil) +52.4% Client Equity up on Higher Deposits, and 107,346 111,868 Better Market Conditions Client equity was up 52.4% Y/Y to Php111.9 Bil 73,102 72,398 72,673 73,419 as of end June 2021. Net new cash inflows from retail clients reached Php15.0 Bil during the past twelve months.
Slide 22: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +37.5% Margin Loans Up 822 Average daily margin loans increased by 37.5% to Php627 Mil Y/Y. 627 617 As of end June 2021, the total number of 536 518 approved margin accounts was 1,243, higher by 456 7.9% compared to the same period last year. Only 32.0% of approved m
Slide 23: COL Accounted for a Sizeable Portion of Industry Equity Fund Sales
1H21 Net Sales (in Php Mil, Acc to Type of Fund) Net Sales Industry COL % Share COL Accounted for a Money Market 21,203.0 5.3 0.0% Sizeable Portion of Bond -20.4 -4.2 20.6% Industry Equity Balanced -229.1 10.3 -4.5% Fund Sales Equity 3,585.3 151.5 4.2% Total 24,538.7 163.0 0.7% 23
Slide 24: COL Accounted for a Sizeable Portion of Some Fund Houses' Net Sales
1H21 Net Sales (in Php Mil, Acc to Fund House) Net Sales Industry COL % Share ALFM 5,879.6 -3.3 -0.1% COL Accounted for a ATR -209.8 49.3 -23.5% Sizeable Portion of FAMI 534.4 5.8 1.1% Some Fund Houses’ Phil Equity 126.9 90.0 71.0% Net Sales SLAMCI 16,811.5 21.2 0.1% Total 23,142.6 163.0 0.7% *Funds
Slide 25: Average AUA Up
25 during the first half. Trailer fees up due to increase in Average AUA Up average AUA on a Y/Y and YTD basis 2Q15 19.1 3Q15 132.6 4Q15 319.7 1Q16 513.0 2Q16 753.6 3Q16 1,003.8 4Q16 1,174.0 1Q17 1,328.4 Source: PIFA, COL estimates 2Q17 1,529.1 3Q17 1,766.5 4Q17 2,028.5 1Q18 2,238.8 2Q18 2,332.4 3Q1
Slide 26: Growing Number, but lower Percentage of Clients Owned MFs
Growing Number, but lower Percentage of Clients Owned MFs MF Investors % of Total Clients 70,000.0 16.0% 14.3% 13.5%13.9% 13.8% 13.2%13.5% 13.1% 60,000.0 12.8% 14.0% 12.3%12.4%12.5% 13.0% 11.6%12.0% 11.1% 12.0% 50,000.0 10.4% 9.9% 9.5% 8.9% 10.0% 40,000.0 8.5% 7.5% 6.9% 8.0% 60,866 60,418 60,268 57,
Slide 27: Growing Number, but Lower Percentage of Clients Own MFs
27 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 SOURCE: COL ESTIMATES 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% MF Investors 30,421 11.6% 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% % of Total
Slide 28: Disclaimer
Disclaimer This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of COL Financial (the “Company”). This presentation, as well as discussions arising therefrom